Head-To-Head Analysis: Newtek Business Services (NASDAQ:NEWT) and The Amacore Group (OTCMKTS:ACGI)

Newtek Business Services (NASDAQ:NEWT) and The Amacore Group (OTCMKTS:ACGI) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility and Risk

Newtek Business Services has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, The Amacore Group has a beta of 3.63, indicating that its stock price is 263% more volatile than the S&P 500.

Valuation and Earnings

This table compares Newtek Business Services and The Amacore Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newtek Business Services $92.20 million 9.13 $33.62 million $2.05 18.24
The Amacore Group N/A N/A N/A N/A N/A

Newtek Business Services has higher revenue and earnings than The Amacore Group.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Newtek Business Services and The Amacore Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newtek Business Services 0 3 0 0 2.00
The Amacore Group 0 0 0 0 N/A

Newtek Business Services presently has a consensus target price of $29.50, suggesting a potential downside of 21.10%. Given Newtek Business Services’ higher possible upside, equities research analysts clearly believe Newtek Business Services is more favorable than The Amacore Group.

Insider and Institutional Ownership

13.6% of Newtek Business Services shares are owned by institutional investors. 5.1% of Newtek Business Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Newtek Business Services and The Amacore Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newtek Business Services 63.91% 18.82% 7.83%
The Amacore Group N/A N/A N/A

Summary

Newtek Business Services beats The Amacore Group on 7 of the 8 factors compared between the two stocks.

Newtek Business Services Company Profile

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments. Under debt investments, it focuses on first lien loans, which have terms of 1 to 25 years; second lien loans, which have terms of 5 to 25 years, and unsecured loans, which are provided to meet short-term funding needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, and Capcos segments. The company originates small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment, and inventory, as well as to refinance debt and fund franchises, working capital, and business acquisitions; and offers small business loan servicing and consulting services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as provides management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software to merchants, eCommerce, electronic solutions to accept non-cash payments, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs. The company also provides Website hosting, dedicated server, and cloud hosting services; Web design and development; Internet marketing; data storage and backup and other related services; and ecommerce services, such as payment processing, online shopping cart tools, Website design and Web related services; Accounts Receivable Financing, and The Secure Gateway. In addition, it offers Newtek Advantage, a mobile, real-time operating platform enabling a business to access data on a smartphone, tablet, laptop, or PC for eCommerce, credit/debit transactions, Website statistics, payroll, insurance, and business loans. Further, the company sells personal, commercial, and health/benefits lines of insurance products; and payroll management processing and employee tax filing services. It has strategic alliances with American International Group, CTAA, Navy Federal Credit Union, Credit Union National Association, Pershing, and others to provide agent services to small business clients. The firm seeks to invest in New York and Louisiana area. The firm seeks to invest $0.3 million to $3 million in businesses. It provides small business terms loans ranging from $0.05 million to $10 million. The firm also provides account receivable financing ranging from $0.05 million to $1.5 million. It also provides $0.05 million to $10 million financing to owner occupied real estate businesses whose average net income over the last 2 years must not exceed $2.5 million. Newtek Business Services Corp., formerly known as Newtek Business Services Inc., was incorporated on August 26, 2013 and is headquartered in Boca Raton, Florida with additional offices in Lake Success, New York, Garden City, New York; Miami, Florida; Milwaukee, Wisconsin; New Orleans, Louisiana; and New York, New York.

The Amacore Group Company Profile

The Amacore Group, Inc. provides and markets healthcare-related membership products for individuals and families. Its products include limited and major medical insurance programs, supplemental medical insurance, and discount dental and vision programs. The company also provides and markets lifestyle membership programs, including insurance discounts, discount benefit savings, ID theft, legal counsel, credit management, automotive warranties, employment protection, and a host of others. The company serves insurance carriers, financial institutions, affiliate marketers, direct marketers, insurance agents, and fortune 500 companies. It distributes its products and services through various distribution methods, such as its agent network, inbound call center, in-house sales representatives, network marketing, and affinity marketing partners, as well as through third-party direct response marketers. The Amacore Group, Inc. was formerly known as Eye Care International Inc. and changed its name to The Amacore Group, Inc. in April 2005. The company was founded in 1993 and is based in Maitland, Florida.

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